Legal options for dealing with unlicensed contractors

“Because these people and companies lack accountability and have a high rate of involvement in construction scams,” says the state Contractor’s License Board.

“State law also restricts how an unlicensed contractor can seek payment,” said Simon Etehad, an LA attorney specializing in dealing with unlicensed contractors. “To start, an unlicensed contractor cannot sue to collect payment for work. I am not telling someone to not pay someone for legitimate work, but unlicensed contractors are not legitimate workers.”

The law goes further, saying an unlicensed contractor can be forced to repay anything he was paid for a job.

“This is part of state law and two major court decisions. In the law and the court cases, an unlicensed contractor was forced to repay everything he was paid to do work,” Mr. Etehad said.

California has a licensing department for contractors to make sure the people doing the work are trained and have the necessary permits and insurance. It is done to protect the consumers.

“Fortunately the law adds even more protections for consumers who hire unlicensed contractors. Sometimes people just lie and said they have all the licenses, permits and other things the state requires. If you find out the person who did work on your home or business was not licensed, you can hold that person accountable,” Mr. Etehad said.